Forget about all the nonsense the bashers/traders are writing on this mb about XIN fraud and china economy collapsing. My main and only cocern is privatization at a fraction of its value. The stock price will not stay at these levels very low level forever, one way or another. I hope it will keep trading publicly, but if the CEO maybe backed by some PE fund gets bored and decides to put in a bid at a fraction of the company value, then what could the minority shareholders do to prevent it, in particular if CEO becomes the majority sheraholder after the buyback program is compoleted?
he won't be the majority shareholder after the buyback program.
he has stated numerous times, as well, that he likes being on the NYSE for a number of reasons, including personal cache. If now moving into US, access to the capital markets is an efficient way to expand (and access US $) assuming he wants to grow the business.
Both reasons and behavior exhibited over a number of years makes going private less likely from this end.
Never count on a CEO to do anything except what which will make him richer. When a China stock CEO's asked "do you like being a US listed stock?"; they'll always say yes - until they're given an option that makes them more money by saying no.
On ZSTN board there's a poster called "Tmkay". Practically all his posts were like this one: CEO loves US listing, loves us, from old school, never wants to leave US capital markets, always talks about how great things are, etc. He even used to sign off his posts with "Go, Jhong Bo!"
Not anymore, though. On August 13, his CEO/hero signed a Form 15 formally asking the SEC to de-list ZSTN from the US capital markets.
Take a CEO's interview question answer as gospel at your own peril.
Added to the standard going private models is a brand new methodology that uses the Chinese fraud perception to its advantage, using it to sidestep the Book Value problem in going private by purchasing the vast majority of its shares in the public market before closing out the remaining minority shareholders.
I've closely watched this new method as it has been used for ZSTN and CMED(Y)(Q), and written extensively about it on those boards. To an attorney, new legal methodologies, especially those that blur the line between legal and illegal, are like sugar water for a fly.
It is a possible scenario provided the CEO thinks the holding company is worth a management buyout.
In fact, if I am the CEO of XIN and think XIN really deliver the numbers it reported, I will take it private right now with a possible 20% premium. Where could he find a deal better than this? Again, it all depends on what the real value of XIN is.